KEY POINTS
- Eskom issues RFP for 291MW of new solar capacity, with bids closing September 19, 2025.
- Successful projects will be commissioned in phases under long-term PPAs with the utility.
- Tender is part of South Africa’s broader push to cut coal reliance and integrate more renewable energy.
As part of its continuous efforts to stabilize the nation’s unstable electrical grid and lessen its dependency on aging coal-fired plants, South Africa’s troubled power company Eskom has opened bids for 291 megawatts of new solar generation.
On August 11, the state-owned utility released the request for proposals (RFP), asking independent power producers to submit their bids by September 19. Successful developers will supply electricity straight into the national grid by entering into long-term power purchase agreements with Eskom.
Timelines for the phased commissioning of the new solar capacity will be decided upon after contracts are awarded.
Bid round signals shift toward decentralised energy supply
The tender is being held at a time when rolling blackouts and ongoing power outages have hampered South Africa’s economic growth for over ten years. Both domestic and foreign investors are closely monitoring Eskom’s shift to renewable energy sources because they believe solar is a quicker and less politically sensitive option than new coal or nuclear plants.
Despite being small in relation to the nation’s installed capacity, analysts point out that 291MW represents a significant step toward diversifying generation sources. According to Johannesburg-based independent energy consultant Thandi Maseko, “this is a sign Eskom is embracing a more decentralized, private sector-driven model for power generation.”
The government and industry have put a lot of pressure on the company to update its fleet of generators and lower carbon emissions. With over 80% of its electricity derived from coal plants, many of which are decades old and prone to failure, South Africa continues to be one of the most coal-dependent economies in the world.
In keeping with Pretoria’s pledge to reduce emissions and draw in green finance, Eskom’s most recent procurement is a part of a larger national effort to integrate renewable energy into the grid on a large scale. Strict performance guarantees will be applied to the solar projects, and underperformance will result in penalties.
